German startups forge 33 tech alliances with Japan amid Merz visit

German startups are betting big on Japan. Should the rest of Europe follow?

Tokyo has become the new proving ground for Germany’s most ambitious technology firms. During Chancellor Friedrich Merz’s visit, Munich-based Proxima Fusion locked in two Japanese partnerships while drone maker Quantum Systems revealed agreements with Mitsubishi Chemical and Panasonic, plus plans for a permanent Tokyo office.

The announcements arrived as part of a broader diplomatic offensive. Japanese news agency Jiji Press reported that Germany and Japan expected to sign 33 memoranda of understanding covering AI, nuclear fusion, and other advanced technologies. Yet the strategic shift extends far beyond a single political trip.

Quantum Systems, founded in Gilching in 2015, confirmed the launch of Quantum Systems Japan K.K. alongside the two industrial MoUs. The company develops unmanned aerial systems for defence, security, and civilian use. Co-CEO Sven Kruck pointed to Ukraine as proof that unmanned systems and rapid innovation now decide military outcomes. Japan’s manufacturing strength combined with German operational experience, he argued, creates a decisive advantage.

Proxima Fusion, a 2023 spin-out from the Max Planck Institute for Plasma Physics, struck one deal with Kyoto Fusioneering focused on plasma-heating and fuel-cycle technology. A second agreement with Fujikura targets industrial-scale superconducting tape production in Lower Saxony.

Meanwhile, German aerospace group OHB signed an MoU with Japanese space-tech firm Astroscale around orbital servicing and space security.

The momentum had already been building. Defence AI startup Helsing pursued a Japanese military contract with support from Rakuten while its HX-2 drone underwent testing. Panasonic invested €30 million in Munich-based tado° back in March 2025. QUDORA Technologies established a Japanese subsidiary and later won a government-backed quantum research project alongside Kyocera.

Japan’s precision engineering, advanced materials, and robotics capabilities offer startups access to manufacturing partners that would take years to replicate independently. Tokyo has also pushed its own startup agenda, targeting roughly €56 billion in annual investment by 2027.

The partnerships suggest a formula: find established Japanese collaborators rather than enter the market alone. Whether the rest of Europe follows Germany’s lead remains the open question.